PAYE tax table specifications for Scottish Rate of Income Tax

05 August 2016

5 August 2016

As part of the implementation of wider devolution for Scotland the Scottish Government will be allowed to set income tax bandwidths that differ from the rest of the UK. These powers will apply from 6 April 2017.

Due to this change HMRC’s Software Developers Support Team (SDST) have provided a new draft of the Tax Table Routines specification which includes some new definitions for separate Scottish tax bandwidths.

The overall calculation method in the specification remains the same except that Scottish calculations no longer refer to the same bandwidths as the rUK calculations. The new definitions relating to Scottish bandwidths are shown in the definition list (at 2.1, 3.1, 9.1, 10.1) starting on page 8. The Scottish formulae and Appendices later in the document have also been amended to show these new definitions.

This revised specification is being provided as a draft version initially to give SDST the chance to consider any feedback but it will be finalised/published in the coming weeks. If you do have any feedback please email SDSTeam@hmrc.gsi.gov.uk by 26 August.

This Specification supersedes all earlier ones showing the method of computing PAYE tax, and expands on the information contained in the "Employer Further Guide to PAYE and NICs" (CWG2).

Specification for PAYE tax table - draft v5.pdf